Legacy, Stewardship, and Planned Giving: Let's Get Clear on the Terms

The nonprofit sector employs a major portion of the workforce—13.6 million people in January 2025, according to one study, accounting for 8.6 percent of total nonfarm payroll employment in the United States. That’s a big number, but it’s not everyone, which means that the majority of board members and donors are not familiar with nonprofit terminology or the nuances of charitable giving.

That’s why it’s important to avoid confusing words wherever possible as you build relationships with your supporters. Jargon is everywhere, and an especially bothersome culprit is the vocabulary related to planned giving. Wherever possible, try to clarify what you mean when you’re throwing around certain terms.

Here are a few examples:

Planned Giving: The Long Game

“Planned giving” simply refers to a gift that does not happen immediately. Gifts of cash or publicly-traded stock are typically considered “current” gifts because they are transferred and used right away. In contrast, a gift of real estate, a charitable remainder trust, a bequest in a will, or a beneficiary designation on a retirement account is generally considered a planned gift. These gifts are structured in advance and are realized months or years in the future.

Legacy Giving: Making It Personal

“Legacy giving” is often used interchangeably with “planned giving,” but it technically refers more specifically to gifts that take effect upon a donor’s death. This most commonly includes bequests in a will or trust and beneficiary designations on retirement accounts, life insurance policies, or other financial assets.

Stewardship: The "Internal" Word

“Stewardship,” which is a term you might use internally, refers to the ongoing process of engaging donors in long-term, meaningful relationships. It’s likely not a term you use with donors.

Endowments and Agency Funds: Fueling the Future

Finally, it is important to remember that both current and planned gifts can be directed to endowment. An endowment fund allows a donor’s gift, whether made today or realized in the future, to provide support for your mission for generations to come. Sometimes donors use “endowment” when they really mean a planned gift or a legacy gift.

Keep these terms in mind as you build your donor communications, prepare board presentations, and work with your colleagues. Everyone benefits from clarity.

If you want a thought partner in our region for handling a complex gift, talking through an endowment or agency fund, or simply figuring out the right words for donors, reach out to us at Kitsap Community Foundation anytime.